10 Simple Ways to Make Your Home More Green

1. Use Fluorescent Bulbs. Replace conventional incandescent light bulbs with compact fluorescent light bulbs (CFLs). They cost a little more, but last up to 10 times longer, use two-thirds less energy and give off 70 percent less heat.
2. Look for the Energy Star Label. Energy Star-qualified refrigerators use about half as much energy as refrigerators made before 1993.
3. Get Unplugged. Many home electronics still consume energy even when they are turned off. Many devices with a "standby mode" will continue to use power. Also, chargers and power adapters continue to draw power from the wall socket even if the device is not attached. Unplug these devices or use a power strip to turn off multiple units, when they aren’t being used to make sure that you aren’t wasting energy.
4. Double-Up on Windows. Replacing old single-pane windows with double pane windows helps reduce heat loss in winter and heat gain in the summer.
5. Turn Down the Thermostat. Lowering you thermostat by just one degree can reduce costs by about four percent.
6. Sustainable Floors. Cork flooring not only looks great, but it’s also natural insulator. So when you look into purchasing flooring, consider using bamboo, cork or another sustainable material.
7. Earth-Friendly Decks. A lot of deck material comes from tropical hardwoods. These woods look great and stand up to the elements for a very long time.
8. Low-Flow Faucets. Low-flow water fixtures such as showerheads, faucets and toilets reduce water consumption and water heating costs by as much as 50 percent.
9. Buy Renewable Energy. Check with your local utility company and see if you can purchase renewable energy.
10. Recycle! After you replace all those inefficient, windows and fixtures, make sure you recycle all that metal and glass. By recycling half of your household waste, you can save 2,400 pounds of carbon dioxide annually. Find more information about programs in your area by visiting www.recycle.com.

Does a Drop in the Federal-Funds Rate Influence Fixed-Rate Mortgages?

Mortgage rates actually follow the bond market, not the Fed-funds rate. The interest rate on a 30-year fixed-rate mortgage tracks the yield on the 10-year Treasury note. Lenders typically set their base mortgage rate around two percentage points higher than the 10-year bond yield. Rates on adjustable-rate mortgages are tied to yields on two-, three- and five-year Treasuries. These short-term loans are more sensitive to Fed rate movements, and those with the shortest maturities see the greatest impact when short-term rates rise and fall.

So if you want to know the direction of mortgage rates, you need to get a sense of where bond yields are heading. Investors tend to flock to the safety of U.S. Treasury when they’re worried about the state of the economy. That "flight to quality" drives bond prices higher and their yields lower. (Bond prices move inversely to yields.)

Rather than gamble and wait on lower rates, consider a lender that is willing to let your rate "float down" if mortgage rates drop after you’ve locked in your loan, but before the closing. Lenders often charge fees for float downs--typically around 0.25% of the loan balance--so make sure you understand the loan’s terms of the float down before you choose the option. Feel free to ask me for a Mortgage Broker referral.